John wants to roll in or finance the loan fee of $3.500 into the loan amount...

 

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John wants to "roll in" or finance the loan fee of $3.500 into the loan amount which would make the loan $87,500 and the interest rate Required: a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? c. If John pays off the loan after five years, what is the effective interest rate? d. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within elght years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate? (Round your final answer to 2 decimal places.) Effective interst ra ( Repuired C John wants to "roll in" or finance the loan fee of $3.500 into the loan amount which would make the loan $87,500 and the interest rate Required: a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? c. If John pays off the loan after five years, what is the effective interest rate? d. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within elght years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate? (Round your final answer to 2 decimal places.) Effective interst ra ( Repuired C

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a The lender will actually disburse 87500 because laon fee amounting to 3500 will form part of the l... View the full answer